Blue Dolphin to Deliver Production from Its GOM Pipeline System

Blue Dolphin Energy Company's wholly-owned subsidiary, Blue Dolphin Pipe Line Company, has entered into gas and condensate transportation and production handling agreements with a new producer/shipper to deliver production into the Blue Dolphin Pipeline system at the Company's Galveston Block 288C platform.

Additionally, as a result of participation in development of the successfully drilled prospect, Blue Dolphin has earned an overriding royalty interest in the production. The Company expects production and transportation services to commence later this month or by early April.

Throughput volumes are not yet known.

The Blue Dolphin Pipeline system gathers and transports gas and condensate from various offshore fields in the Galveston Area in the Gulf of Mexico to shore facilities in Freeport, Texas. The Company owns an 83% undivided interest in the system.